Westpac nudges businesses towards Merchant Choice Routing

Westpac announced today that thousands of Australian businesses have not yet taken advantage of Merchant Choice Routing (MCR), and it will be taking a proactive role in helping merchants activate the service.
Over the coming months, Westpac will reach out to merchant customers who stand to benefit from MCR, and unless they opt against it, will switch them over.
Westpac chief executive business division, Guil Lima estimates that around 37,000 small businesses will be better off using the service.
“Westpac’s decision today will help merchant customers with Westpac owned terminals activate pricing that’s best for them, giving them one less thing to worry about at an already very challenging time,” he said.
What is Merchant Choice Routing?
In Australia, contactless payments are processed by one of three networks - eftpos, Mastercard, or Visa. Most debit cards are dual network cards, meaning they can be processed via the domestic eftpos network and the international Visa and Mastercard network.
When a customer inserts their debit card in a point-of-sale terminal, they can choose to route the transaction to the eftpos network (by selecting CHQ or SAV) or the international network (by selecting CR).
But when it comes to contactless payments, that choice disappears. Instead, transactions will often default to international networks, which typically charge higher merchant service fees (up to double those of eftpos).
Merchant Choice Routing - also known as least cost routing - gives merchants the ability to choose which network processes their business’ debit transactions. By selecting the cheapest one, merchants can see significant savings.
How will businesses benefit?
Since April 2019, merchants operating on Westpac owned terminals have been able to opt in to the MCR service. However, confusion surrounding what it is and how it can benefit businesses has kept uptake low.
According to Lima, potential savings will depend on a few factors, including card mix, industry, transaction volume and size, and pricing plan. But even a small amount can go a long way in the current business climate.
"Every business will be different, for some customers it might mean savings of less than $100 per annum while others may save upwards of $1000,” he said.
“The impact of the pandemic on small business earnings and the potential for MCR to provide cost savings for merchants, is a key reason we are making this change now.”
“At the same time, there are a range of merchant transaction costs for businesses we are also working to simplify. Our goal is to make it easier for customers to understand their cost of acceptance and increase transparency.”
For information about the help currently available, read our small business financial support guide. And if you’re after extra finance, head over to our business loans comparison page, or browse the selection below.
Business loan comparisons on Mozo - rates updated daily
Line of Credit
Unsecured business funding up to $500K. Start the online application process in just 5 minutes, and get access to funds within 24 hours once approved. Great for ABN registered businesses with an annual turnover of $200K+.
Interest Rate
Upfront Fee
Funding speed
On Application2% to 3%Instantly, once approvedLine of Credit
Unsecured business funding up to $500K. Start the online application process in just 5 minutes, and get access to funds within 24 hours once approved. Great for ABN registered businesses with an annual turnover of $200K+.
- Interest Rate
- On Application
- Upfront Fee
- 2% to 3%
- Ongoing Fees
- $0.00
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- 0
- Other fees
- Various late payment fees may apply.
- Loan type
- Line of Credit
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 6 months
- Maximum loan term
- 5 years
- Repayment frequency
- Weekly, Fortnightly, Monthly
- Repayment types
- Principal & Interest
- Minimum trading period
- 18 months
- Minimum annual turnover
- $200,000
- Application speed
- 10 minutes
- Approval speed
- 24-48 hours
- Funding speed
- Instantly, once approved
- Extra repayments allowed
- Yes
- Redraw allowed
- Yes
- Other benefits
- -
- Other restrictions
- -
Short Term Business Loan
Unsecured business loans from $10,000 - $250,000, over 6 to 24 months. Online application takes only 10 minutes and you'll know if you're approved within hours. Apply now.
Interest Rate
Upfront Fee
Funding speed
On Application3.00%from 24 HoursShort Term Business Loan
Unsecured business loans from $10,000 - $250,000, over 6 to 24 months. Online application takes only 10 minutes and you'll know if you're approved within hours. Apply now.
- Interest Rate
- On Application
- Upfront Fee
- 3.00%
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $250,000
- Minimum loan term
- 6 months
- Maximum loan term
- 2 years
- Repayment frequency
- Daily, Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 1 year
- Minimum annual turnover
- $100,000
- Application speed
- 10 Minutes
- Approval speed
- from 24 Hours
- Funding speed
- from 24 Hours
- Extra repayments allowed
- No
- Redraw allowed
- Eligible to apply for renewal after 50% paid down
- Other benefits
- -
- Other restrictions
- Minimum $100k turnover and 1 Year in Business.
Lumi Lux
Lumi Lux™ is an innovative rate-reducing business loan that rewards customers for a good repayment history over the loan term by dropping interest rates by 25 basis points every six months (T&Cs apply). The loan is for more established businesses with minimum $2M revenue.
Interest Rate
Upfront Fee
Funding speed
from 14% to 20%-VariesLumi Lux
Lumi Lux™ is an innovative rate-reducing business loan that rewards customers for a good repayment history over the loan term by dropping interest rates by 25 basis points every six months (T&Cs apply). The loan is for more established businesses with minimum $2M revenue.
- Interest Rate
- from 14% to 20%
- Upfront Fee
- -
- Ongoing Fees
- 3.5% establishment fee of the disbursed amount.
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Loan
- Security type
- Property Secured
- Minimum loan amount
- $200,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 1 year
- Maximum loan term
- 4 years
- Repayment frequency
- -
- Repayment types
- -
- Minimum trading period
- 3 years
- Minimum annual turnover
- $2,000,000
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- -
- Redraw allowed
- -
- Other benefits
- Loan interest rate decreases by 0.25% every 6 months with good repayment history up to a maximum 2% drop.
- Other restrictions
- Must be secured against property.
Read our Mozo Review to learn more about the Lumi Lux
Invoice Finance
Set up a line of credit against your debtors ledger, which grows with your business. Access funds as soon as you invoice instead of waiting for your customers to pay. ScotPac is the largest non-bank lender in Australia with over 30 years' experience partnering with local businesses.
Interest Rate
Upfront Fee
Funding speed
from 4.00% p.a.On ApplicationFrom 24 hoursInvoice Finance
Set up a line of credit against your debtors ledger, which grows with your business. Access funds as soon as you invoice instead of waiting for your customers to pay. ScotPac is the largest non-bank lender in Australia with over 30 years' experience partnering with local businesses.
- Interest Rate
- from 4.00% p.a.
- Upfront Fee
- On Application
- Ongoing Fees
- -
- Late payment fee
- -
- Transaction fee
- $0.00
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $10,000
- Maximum loan amount
- -
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- -
- Repayment types
- -
- Minimum trading period
- 0 years
- Minimum annual turnover
- $0
- Application speed
- From 24 hours
- Approval speed
- From 24 hours
- Funding speed
- From 24 hours
- Extra repayments allowed
- -
- Redraw allowed
- -
- Other benefits
- Line of Credit against debtor ledger
- Other restrictions
- -
Unsecured Business Loan
Business Loans from $5,000 to $600,000 with high approval rates. Access to funds in as little as 3 hours. Cash flow friendly repayments and open minded offers.
Interest Rate
Upfront Fee
Funding speed
On Application3%, starting at $399from 3 hoursUnsecured Business Loan
Business Loans from $5,000 to $600,000 with high approval rates. Access to funds in as little as 3 hours. Cash flow friendly repayments and open minded offers.
- Interest Rate
- On Application
- Upfront Fee
- 3%, starting at $399
- Ongoing Fees
- no
- Late payment fee
- $50.00
- Transaction fee
- -
- Early repayment penalty
- no
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $600,000
- Minimum loan term
- 3 months
- Maximum loan term
- 1 year
- Repayment frequency
- Weekly, flexible
- Repayment types
- Principal & Interest
- Minimum trading period
- 6 months
- Minimum annual turnover
- $120,000
- Application speed
- 10 Minutes
- Approval speed
- within 1 hour
- Funding speed
- from 3 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- Daily repayments available.
- Other restrictions
- -
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.